California IOUs
So, California’s State Controller (the guy who cuts the checks) has confirmed that if California cannot cover their looming deficit, things are about to get serious. As usual, the people this will affect the most will be those who can least afford it. How does this affect my life? My 19 year old daughter suffers from auto immune disorders (a lot of them). She is currently in the middle of a series of surgeries that started last year and will continue throughout the next year. These illnesses, complications and all the surgeries mean that she cannot perform work that will allow her to support herself. Therefore, she receives SSI (Social Security Income). Already, this amount is insufficient to cover her rent, utilities and food, so I help her out a little each month. Part of this SSI payment comes from the federal program, and roughly $200 comes from the state of California to account for the cost of living in our state. If the State of California issues IOU’s, then she will lose $200 a month (depending on whether her bank will honor the IOU). In order to keep this medically fragile person from starving to death, I will have to make up the deficit, above and beyond what I already do.
My step-mother is also disabled. A life-long diabetic who has had a kidney transplant and a leg amputation, who is legally blind, she also will have a reduction in services. She already skimps on her groceries, and has to pay $13 round trip for Dial-A-Ride in order to go to church, the doctor, buy groceries or pick up her prescriptions. The less money she has, the less likely it is she will be able to take care of her health, leading to more hospitalizations and costs for the State. This happened once before, when her financial situation became so strained that she stopped buying meat. The resulting lack of protein nearly caused her to lose her donated kidney. My fiances mother lives in an assisted living facility. These cuts will also have a direct impact on her life at a time when she needs help the most. It is truly a shame that those with the least amount of monetary fat are amongst those getting the biggest trim.
http://news.yahoo.com/s/ap/20090626/ap_on_re_us/us_california_budget
I receive both Social Security and SSI, I was concerned about California not paying it’s portion too. The state controllers website has a FAQ that says SSI payments won’t be cut and are backed up by the federal government, lets HOPE this turns out to be the truth;
http://www.sco.ca.gov/5935.html
“18. I receive SSI/SSP payments each month. Will I receive an IOU for the State’s share?
No. The federal Social Security Administration has notified California that it will continue to pay in full both the federal Supplemental Security Income (SSI) and the State Supplementary Payment (SSP) to recipients in July and August. State officials will continue to work with the Social Security Administration to ensure California’s 1.2 million SSI/SSP recipients are not affected by IOUs.”
Thank you so much for the info! Let’s all cross our fingers that this is the case. Personally, and I am sure I will get flamed… I would gladly support an increase of taxes if it meant school programs, health insurance for children, payments to the disable, etc. would continue to serve those in need. Unfortunately, when these programs are gone, I feel we will see an increase in health care costs incurred by the state, as well as an increase in the already devastating foreclosure crisis, homeless problem, etc. It is a slippery slope that California’s lawmakers are poised to set us on, and once we start sliding, I do not see how we can stop.
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I am on SSI and recieve $850 a month and am scared of becoming homeless or without food….. It states that the federal government will continue to pay for the SSP portion in California but ONLY until Aug 2009… what then? IS the state supplement going to be cut into more… it’s so hard to pay for rent now.. I am disabled and need this.. I fear that alot of people are going to be homeless..
Tiffany,
I understand the frustration you are feeling. You receive the same amount as my daughter, and I know how tough it is for her. We help as much as we can, but it is hard on everyone. My step-mom lives near San Francisco, and the cost of living there is huge. Already the cuts they have made are affecting her standard of living. Medicare and Medical have stopped paying for treatments such as vision and dental care, and she recently had to pay for a cleaning and x-rays out of her meager SSI income. Every time she receives the cost of living increase from SSI, her HUD housing increases to reflect it, and so she can never get a break. Being legally blind, she is dependent on Dial A Ride to shop, visit the doctor, pick up prescriptions… and Livermore has increased the fee for Dial A Ride to $7 a trip.
I plan to look more into the SSI situation this week, as some of their memos shed light on the frustration they are feeling as well. Despite the fact that the SSA pays its workers, not the State of California, SSA workers are getting furloughs along with everyone else. This means once again there will be delays in receiving services for those persons applying for SSI, or needing to have reviews of their cases. As far as California goes, all I see is a lose-lose situation for everyone. I wish you the best of luck, and if you have any tips on how yuo are surviving this budget crisis, please feel free to share!
DoozieMom
The state cut my SSI check by 44 dollars a couple of months ago. I recently got a letter saying that I should expect another cut. Imagine my surprise when I discovered my SSI check had been cut by more than 200 dollars! I guess the federal government has not yet kicked in the amount the state cannot pay me? Who knows? Every other state in the country gives SSI recipients food stamps to help them get by, but CA gives (gave) money instead. Now we don’t get either. I just don’t see the reasoning behind this. The hardship placed on the disabled is bound to cost the state MORE money, right?